Research Monograph

Shari'ah has specific rules for dealing in each class of assets and activities; i.e., cash, debt, goods, usufruct, and those classified as either halal (permissible) or haram (impermissible). These rulings can be easily applied when such an asset or activity is an independent subject matter of a transaction. However, the issue becomes complicated when an asset or activity is mixed with others and the combination is represented as a single subject matter. A fine example of this situation is shares of a joint stock company. A company share represents all the activities and underlying assets of that company. Some of the activities and assets of that company may be Shari'ah non-compliant while some may be Shari'ah compliant. Such assets can be in any form; i.e., cash, debt, goods, usufruct or rights. There are two main issues that need to be dealt with in considering a company's shares: (1) when it represents a mixture of halal and haram activities and assets, and (2) when it represents a mixture of ribawi and non-ribawi assets.

The interest in developing Islamic fintech in Malaysia and the efforts in achieving it are constantly on the rise. Several startups have launched Shariah-compliant fintech solutions. Shariah advisory boards at regulatory and industry levels have discussed various Shariah issues related to fintech. Resolutions and exposure drafts have been issued or modified by regulators to cover a wide range of Islamic fintech activities. Some government agencies have established dedicated departments to support fintech and the Islamic digital economy. Universities and training centres have started offering specialized courses and programmes to provide the requisite human capital, while research centres have invested in substantial efforts to push the industry forward by conducting extensive research and providing consultancy services. This report documents a representative sample of such efforts.

The contemporary landscape of global finance is witnessing a paradigm shift towards ethical practices, and tayyib stands as the Islamic finance industry's answer to this call. With an increasing global focus on sustainability, the tayyib concept positions itself as the pathway through which Islamic finance expands beyond Shariah compliance (halal), to reach the heights of socially, environmentally, and economically beneficial (tayyib). It not only answers the need for ethical financing but sets a precedent for the Islamic finance industry to emerge as a global leader in responsible financial practices. The tayyib concept emerges as a timely response to the global imperative for the Islamic finance industry to pivot towards ethical financing, aligning seamlessly with the growing interest in sustainability. Positioned as a catalyst for Malaysia to take a global lead in the Islamic finance sector, tayyib serves as a unifying force for countries and jurisdictions engaged in Islamic finance.